Meta layoffs: Company confirms 8,000 job cut to focus on AI

Meta Platforms is planning to reduce its workforce by roughly 10 per cent, impacting about 8,000 employees, as it accelerates investments in artificial intelligence.

The layoffs are set to begin on May 20 and will coincide with the cancellation of hiring for around 6,000 open positions, according to an internal memo first reported by Bloomberg. We have previously reported the rumour, but now Meta has confirmed it.

The decision underscores the company’s ongoing restructuring efforts as it seeks to sharpen its focus on generative AI, an area where it has struggled to keep pace with rivals such as OpenAI, Google and Anthropic.

Meta layoffs 2026

This latest round of job cuts follows a series of workforce reductions over the past year, all aimed at improving efficiency and redirecting resources. In January, the company cut approximately 10 per cent of staff working on metaverse initiatives, with about 1,000 roles eliminated within its Reality Labs division.

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Further layoffs took place in March, affecting hundreds of employees across multiple teams, including Facebook, global operations, sales and Reality Labs. Around the same time, Meta also indicated it would reduce reliance on third-party contractors, particularly in content moderation, and instead deploy AI-driven systems to handle such tasks.

In the memo, Meta has detailed what it calls a “generous” severance package for affected employees in the United States. As per the memo, workers will receive 16 weeks of base pay, along with an additional two weeks’ salary for every year they have served at the company.

The company will also extend healthcare support, covering COBRA insurance costs for employees and their families for up to 18 months.

The broader technology sector is witnessing a similar trend, as companies recalibrate strategies in response to the AI boom. Microsoft recently confirmed it will offer voluntary buyouts to some employees in the United States, with roughly 7 per cent of its workforce eligible. Meanwhile, Amazon announced earlier this year that it would cut around 16,000 corporate roles, marking its second major downsizing since late 2025.

Meta’s workforce has already been shrinking following a pandemic-era hiring surge. The company reported 78,865 employees globally at the end of December, down from 86,482 a year earlier. For context, its headcount stood at 58,604 at the close of 2020, highlighting the rapid expansion and subsequent correction.

Driving these changes is CEO Mark Zuckerberg, who has made strengthening the company’s AI capabilities a central priority. Earlier this month, Meta introduced a new flagship AI model, following high-profile talent acquisitions including Scale AI founder Alexandr Wang.

Meta’s new employee tracking tool to train AI

Alongside workforce restructuring, Meta is also expanding internal efforts to develop AI systems. This week, employees were informed about a new tracking system known as the Model Capability Initiative. The tool is designed to collect data from staff activity on work devices, including keystrokes and mouse movements.

According to the company, this data will be used to train AI agents and improve their performance. A Meta spokesperson said the initiative is intended to support the development of more capable and efficient AI tools, though the move is likely to raise concerns around employee monitoring and data privacy.

The announcement comes ahead of Meta’s first-quarter earnings report, scheduled for Wednesday, when it will report results alongside peers including Alphabet, Amazon and Microsoft.